DTN Early Word Opening Livestock 05/21 06:31
Mixed Trade Expected Early Tuesday
Activity levels through livestock markets should remain sluggish Tuesday as
limited new information is available, which should keep markets within the
current trading range.
By Rick Kment
Cattle: Steady Futures: Mixed Live Equiv: $144.44 +0.37*
Hogs: Steady Futures: Mixed Lean Equiv: $ 91.54 +1.26**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Tight corn supply is expected to bring light-to-moderate pressure in feeder
cattle trade Tuesday. The latest Crop Progress report released Monday posted
total corn planted acres at 49%. This is the lowest level at this date on
record. The uncertainty of how this will impact overall production is causing
concern by cattle feeders, and directly impacting prices paid for feeder
cattle. Live cattle is expected mixed in a narrow-to-moderate range with
limited livestock market direction expected in the next couple of days with the
main focus on outside market moves. Cash cattle trade is undeveloped at this
point and likely will not show significant activity until midweek or later. A
few token bids may start to develop, but asking prices may not show up until
Wednesday or later.
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